I was having a conversation about planning with a colleague the other day. We were discussing how strategy and planning integrate, or at least how they should. I think Sun Tzu had it right in the quote above.
To start with, a great number of people don’t understand the difference between strategy and planning. When I talk of strategy, what I mean is the broad development of business objectives, and the allocation of resources to meet those objectives.
This is decidedly different from planning, by which I mean the development of tactics, specific initiatives and requirements that will meet strategic objectives. Once you understand the difference between the two, the whole strategy and planning process makes more sense. To simplify, consider it a three phased process.
The first phase is the development of strategy. This strategy is developed at every management level, although obviously the strategy depth varies from level to level. Objectives are outlined in broad terms for all subordinate units. The strategy is then passed down to the teams below.
The second phase is the planning phase. Each team develops initiatives that will assist in meeting the strategic objectives. Each initiative serves to outline what will be done, who will do it, how much it will cost, and when it will happen. These plans are then passed up to management.
The third and final phase is for the management team to approve and resource the initiatives appropriately. Through the review of properly planned initiatives, it’s simple to determine which warrant the investment, and which don’t. The list of approved initiatives provides a great base plan for the period.
I’m interested to hear tales of planning and strategy that you may have, so feel free to post a comment.